Domino's Pizza Valuation

Q: What is the Fair Price of D2PZ34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

D2PZ34 (R$55.15) is trading above our estimate of [[fair value]] (R$40.57)

Is D2PZ34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of D2PZ34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: D2PZ34 (R$55.15) is trading above our estimate of fair value (R$40.57)

Significantly Below Fair Value: D2PZ34 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for D2PZ34?

Key metric: As D2PZ34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for D2PZ34. This is calculated by dividing D2PZ34's market cap by their current earnings.
What is D2PZ34's PE Ratio?
PE Ratio	28.3x
Earnings	US$572.02m
Market Cap	US$15.66b

D2PZ34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.4x
Enterprise Value/EBITDA	22.4x
PEG Ratio	4.8x

Price to Earnings Ratio vs Peers

How does D2PZ34's PE Ratio compare to its peers?

The above table shows the PE ratio for D2PZ34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	18.5x
YUMC Yum China Holdings	20.2x	8.8%	US$17.9b
6862 Haidilao International Holding	17.8x	9.7%	HK$81.9b
SW Sodexo	16.1x	8.5%	€11.9b
DRI Darden Restaurants	19.7x	8.2%	US$19.7b
D2PZ34 Domino's Pizza	28.3x	5.9%	R$15.7b

Price-To-Earnings vs Peers: D2PZ34 is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the peer average (18.5x).

Price to Earnings Ratio vs Industry

How does D2PZ34's PE Ratio compare vs other companies in the South American Hospitality Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: D2PZ34 is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the South American Hospitality industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is D2PZ34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

D2PZ34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	28.3x
Fair PE Ratio	32x

Price-To-Earnings vs Fair Ratio: D2PZ34 is good value based on its Price-To-Earnings Ratio (28.3x) compared to the estimated Fair Price-To-Earnings Ratio (32x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.